The City of Aurora's reputation as a Midwest destination for the
arts was solidified today with the announcement of a tax credit award worth
over $15 million from the Illinois Housing Development Authority (IHDA) toward
the development of the Aurora Arts Center at the former Waubonsee Community
College Building downtown.

The $35 million project will be developed by The Community
Builders Inc. and consist of a first­ class restaurant as well as a Paramount
School for the Performing Arts to serve Aurora's growing artistic
community.

In addition, the Joseph Corporation building at 32 S. Broadway
would receive a major capital upgrade. The Waubonsee building has been vacant
for about five years and is located directly next door to the Paramount Theatre
at Galena Boulevard and Stolp Avenue.

Invest Aurora purchased the building earlier this year for
$350,000 in order to facilitate the development of the Arts Center.

"What we're doing here is preserving history, legacy and
beauty, while moving the city toward a brighter future," said Aurora Mayor
Tom Weisner. "This is part of an overall game plan that enhances and
leverages the Arts to create jobs, brings dollars to downtown, create tax revenue
and helps strengthen our community in the long ­run."

"Combining investment in arts, education, recreation, and
quality housing is a proven winning formula for downtown revitalization. But
it's been Aurora's thoughtful and consistent execution of this strategy that
attracted us most," said Will Woodley, Development Director for The
Community Builders. "The Community Builders is honored to play a role in
downtown Aurora's continued resurgence and thankful to IHDA for now joining in
that effort."

The Aurora Arts Center would also include artist­-targeted loft
apartments similar to the successful Cornerstone Apartments, another
development by The Community Builders located in Chicago's Bronzeville
neighborhood. Like Cornerstone, the Aurora Arts Center's 38 rent restricted,
loft­style apartments will give a strong leasing preference to those working at
least part time in the arts.

The center will also include four dedicated apartments for
exclusive use by the Paramount Theatre for out­-of-­town performers and directors
involved in its Broadway Series.

Within the new development, the Paramount's Performing Arts School
will occupy about 30,000 square ­feet of the large building.

Thanks to the Broadway Series, the Paramount's annual attendance
now exceeds 300,000 and the Arts Center is estimated to bring an additional
150,000 new visitors to the downtown each year. Officials believe the project
will continue to spur restaurant and other development downtown and is believed
to be a perfect complement to patrons of the Paramount.

"It's remarkable the amount of enthusiasm there is right now
for development in downtown Aurora including the arts center," said Tim
Rater, President and CEO of the Paramount Theatre. "The possibilities for
the continued transformation of this great downtown just seem limitless. It's a
really exciting time in Aurora and we're glad to be a part of it
all."

Rater had a significant role in developing the Metropolis School
for the Performing Arts in Arlington Heights which will serve as a model for
Aurora's facility and be managed by Rater. Within its first five years, the
Metropolis School had an enrollment of about 2,200 students.

The majority of the project would be paid for by private
investment that is facilitated by a variety of federal tax credits. Normally,
the City will go up to 20% assistance for projects within a TIF District, but
this project is ultimately requiring a City contribution of 5% of the total
project, which means that the project is leveraging a $19 to $1 return on investment.

The specific funding mechanisms will ultimately have to be
approved by the City Council, but the City's contribution includes $1.3 million
in federal pass-­through dollars, a TIF grant of $0.5 million and a bridge loan
of $3 million, which is expected to be repaid by revenue sources generated by
the project itself.

Invest Aurora, the city's not­-for-­profit economic development
partner, which also played a key role in the project, estimates the center will
create 80 to 100 jobs.

At the June 28, 2016 City Council meeting, 7th Ward Alderman
Scheketa HartBurns praised the project, saying, "For this opportunity to
be available to the children and young people in Aurora is great. We love the
arts because the arts love us back. Aurora will be known forever for its
artistic abilities so to try to pull all of this together at this time is a
wonderful thing."

Once completed, the newly built lofts will be made available to
single artists with incomes up to $32,000 per year and $37,000 per year for
couples. Residents are allowed to remain in their homes over time as their
income improves.

"It's not often the City Council gets to consider a $35
million project downtown," added 6th Ward Alderman Mike Saville.
"This development proposal would insert the arts structurally, laying a
foundation for the arts community."